UK Oil & Gas PLC Update - Holmwood Licence (PEDL 143) (7240Z)

TIDMUKOG

RNS Number : 7240Z

UK Oil & Gas PLC

04 September 2018

UK Oil & Gas PLC

("UKOG" or the "Company")

Update on Holmwood Licence (PEDL 143), Weald Basin, UK

UK Oil & Gas PLC (London AIM: UKOG) notes the following announcement made today by Europa Oil and Gas (Holdings) plc on behalf of the operator of the Holmwood Licence PEDL143, of which UKOG holds 40% interest:

"Europa Oil & Gas (Holdings) plc, the UK and Ireland focused oil and gas exploration, development and production company, announces that it has been notified by the Head of Estates at the Forestry Commission that the Minister for the Environment, Food and Rural Affairs, has decided not to renew the lease at Bury Hill Wood, Coldharbour Lane, Surrey. Bury Hill Wood is the proposed site for a temporary exploration well to test the conventional Holmwood prospect on licence PEDL 143 in the Weald Basin, Surrey. The lease expires on 12th September 2018.

Following the Minister's decision, the Company, on behalf of its partners, will be withdrawing its planning application to drill the Holmwood prospect from the Bury Hill Wood site.

PEDL 143 has recently been extended until 30th September 2020, and in addition to the established Portland sandstone reservoir, contains the Kimmeridge Limestone which, following success at the nearby Horse Hill discovery, is an emerging play in the Weald Basin. The Company, with its partners, intends to undertake a full evaluation of alternative sites from which to target the Holmwood prospect, and other plays in the licence."

The full announcement from Europa Oil & Gas (Holdings) plc can be seen at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EOG/13777413.html

Stephen Sanderson, UKOG's Chief Executive, commented:

"The decision by the Minister for the Environment, Food and Rural Affairs, is disappointing, but not altogether surprising. As the Leith Hill Site was less than ideal, we now welcome the opportunity to plot a new way forwards to drill both the Holmwood prospect and other nearby prospective Kimmeridge targets in the near future."

For further information, please contact:

UK Oil & Gas 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 / Neil McDonald Tel: [phone]

Public Relations

Brian Alexander / David Bick Tel: [phone]

UKOG Licence Interests

The Company has interests in the following UK licences:

 
Asset        Licence      UKOG           Licence             Operator         Area             Status 
                         Interest         Holder                              (km(2) 
                                                                                ) 
Avington                                UKOG (GB)           IGas Energy                   Field currently 
 (1)         PEDL070       5%             Limited               Plc           18.3             shut in 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                                                                           BB-1 & 1z oil 
Broadford                                                                                discovery, planning 
 Bridge                                 UKOG (234)          UKOG (234)                      applications 
 (2, 3)      PEDL234      100%            Ltd (4)             Ltd (4)         300.0           submitted 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                                            Europa Oil                 Holmwood-1 exploration 
Holmwood                                                  & Gas (Holdings)                  well planned 
 (3)         PEDL143       40%             UKOG                 plc           91.8             in 2018 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
Horndean                                UKOG (GB)           IGas Energy                   Field in stable 
 (1)          PL211        10%            Limited               Plc           27.3           production 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                                                                          Production tests 
                                                                                          ongoing, further 
                                          Horse             Horse Hill                    appraisal well(s) 
Horse                                Hill Developments      Developments                    scheduled for 
 Hill (5)    PEDL137     46.735%            Ltd                 Ltd           99.3             2018/19 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                          Horse             Horse Hill 
Horse                                Hill Developments      Developments 
 Hill (5)    PEDL246     46.735%            Ltd                 Ltd           43.6            As above 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                                                                         Preparing planning 
                                                                                           submission for 
Isle of                                                                                     Arreton-3 oil 
 Wight                                                                                   discovery appraisal 
 (2, 3)      PEDL331       65%             UKOG                UKOG           200.0             well 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
                                                                                          Revised drilling 
Markwells                               UKOG (GB)            UKOG (GB)                  and testing planning 
 Wood (2)    PEDL126      100%            Limited             Limited         11.2      application underway 
----------             ----------  -------------------  ------------------  --------  ----------------------- 
 

Notes:

   1.   Oil field currently in production. 
   2.   Oil discovery pending development and/or appraisal drilling. 

3. Exploration asset with drillable prospects and leads. PEDL234 contains the Broadford Bridge-1 and 1z

discovery well, the extension of the Godley Bridge Portland gas discovery plus further exploration

prospects.

   4.   UKOG has a 100% interest in UKOG (234) Ltd, which has a 100% interest in PEDL234. 

5. Oil discovery with successful flow test in 3 zones, further long-term testing scheduled in 2018.

   6.   UKOG has a direct 71.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246. 

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 [e-mail] or visit www.rns.com.

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September 04, 2018 06:22 ET (10:22 GMT)