18 November
2015
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
OGA Approval of PEDL143 Farm-In, Holmwood Prospect,
Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM and
ISDX:UKOG) announces that it has received final regulatory consent
from the Oil and Gas Authority ("OGA") to acquire a 20% interest in
UK onshore Weald Basin licence PEDL143, via the previously
announced farm-in with Egdon Resources U.K. Limited ("Egdon").
PEDL143 covers 35.5 square miles and is located to
the immediate west of Horse Hill licence PEDL137, in which UKOG has
a 20.163% interest, and to the immediate south of the Brockham oil
field, licence PL235, in which UKOG has an interest via its 6%
ownership of Angus Energy Limited.
PEDL143 contains the Holmwood conventional prospect,
which the PEDL143 partnership plans to test with the Holmwood-1
("H-1") exploration well. Full planning consent was granted for the
well in September 2015. The well is intended to be drilled to a
total depth of approximately 4,600 ft (1,400 metres) true vertical
depth, to penetrate the Upper and Lower Portland Sandstone
reservoir targets, the full Kimmeridge tight oil section and the
underlying Middle Jurassic Corallian Sandstone reservoir
objective.
As previously reported, a Competent Persons Report
("CPR") by ERC Equipoise Limited ("ERCE") shows the H-1 exploration
well will target mean gross prospective resources of 5.6 million
barrels for the combined Portland and Corallian objectives.
The H-1 well will also provide a key new penetration
into the Kimmeridge tight oil play fairway, adjacent to UKOG's
Horse Hill licences. The H-1 well will represent only the third
modern well to penetrate and sample the Kimmeridge tight oil
section alongside Horse Hill-1 and Balcombe-2. Therefore, the well
will provide an insightful modern data point in the overall tight
oil proof of concept process in the Weald Basin.
The recently reported Nutech Wider Weald oil in place
study indicates the Kimmeridge section to be favourably developed
and with significant oil in place underlying the proposed H-1 well
location and PEDL143. Nutech identified further significant tight
oil potential in the Oxford Clay and Lias Formation sections
underlying PEDL143.
The partnership anticipates that H-1 drilling will
take place in late 2016 or early 2017.
Stephen Sanderson, UKOG's Executive Chairman
commented:
"As a result of OGA's consent for the PEDL143
farm-In, UKOG has now materially increased the prospective
resources and recoverable oil potential of its core Weald
portfolio. The conventional Holmwood prospect alone adds an
additional net 1.1 million mean unrisked barrels of prospective
resources to UKOG.
The additional potential contained within the
Kimmeridge tight oil section, to be tested by the H-1 well,
provides the company with both a stronger overall position in the
tight oil play fairway and a further opportunity to validate the
regional extent and commerciality of the play.
Given UKOG's position in the Kimmeridge limestone
play, together with its knowledgeable position in the Portland
gained from Brockham and Horse Hill-1, we plan to be an active
partner, particularly in assisting well design and data acquisition
within the H-1 well.
We look forward to a fruitful relationship with the
partnership and future success in the H-1 well."
Qualified Person's Statement:
Stephen Sanderson, UKOG's Executive Chairman, who has
over 30 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 / Jason
Berry
Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / Mark
Leonard
Tel: 020 7220 1666
Square 1 Consulting (Public Relations)
David Bick / Brian
Alexander
Tel: 020 7929 5599
GLOSSARY
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limestone
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a sedimentary rock predominantly composed of
calcite (a crystalline mineral form of calcium carbonate) of
organic, chemical or detrital origin. Minor amounts of dolomite,
chert and clay are common in limestones. Chalk is a form of
fine-grained limestone
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mean
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or expected value, is the probability-weighted
average of all possible values and is a measure of the central
tendency either of a probability distribution or of the random
variable characterised by that distribution
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oil in place
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the quantity of oil or petroleum that is
estimated to exist originally in naturally occurring accumulations
before any extraction or production
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play
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a set of known or postulated oil and or gas
accumulations sharing similar geologic, geographic, and temporal
properties, such as source rock, migration pathways, timing,
trapping mechanism, and hydrocarbon type
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Probability of Success (POS)
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also known as chance of success (COS), being
the probability that an exploration well will encounter flowable
hydrocarbons from a prospect with a described volumetric
probability distribution. The POS or COS represents the combined
probability of the presence of key elements of a petroleum
accumulation such as; the presence of mature source rock, effective
hydrocarbon migration and charge, the presence of an effective
reservoir and seal couplet and the presence and definition of a
hydrocarbon trapping mechanism or trap
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prospect
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a project associated with a potential
accumulation that is sufficiently well defined to represent a
viable drilling target
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prospective resources
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those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects;
potential accumulations are evaluated according to their chance of
discovery and, assuming a discovery, the estimated quantities that
would be recoverable under defined development projects. It is
recognised that the development programs will be of significantly
less detail and depend more heavily on analogue developments in the
earlier phases of exploration
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reservoir
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a subsurface rock formation containing an
individual natural accumulation of moveable petroleum that is
confined by impermeable rock/formations
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sandstone
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a clastic sedimentary rock whose grains are
predominantly sand-sized. The term is commonly used to imply
consolidated sand or a rock made of predominantly quartz
sand
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tight oil
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oil found or expected to be present within a
reservoir with low permeability, i.e. a tight reservoir. The term,
in the case of the Weald Tight Oil Plays, is applied to a play
where trapped petroleum accumulations are expected to be pervasive
throughout a large area and that are not significantly affected by
hydrodynamic influences (also called "continuous-type
deposits")
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unrisked
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without multiplying by the Probability of
Success factor.
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Notes to Editors:
The Company has interests in the following UK
licences:
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Asset
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Licence
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UKOG's Interest
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Licence Holder
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Operator
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Area (km2)
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Status
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Avington 1
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PEDL070
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5%
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UKOG (GB) Limited
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IGas Energy Plc
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18.3
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Field in stable
production.
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Baxters Copse
2
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PEDL233
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50%
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UKOG Weald Limited
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IGas Energy Plc
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89.6
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Reviewing economics of appraisal/
development well.
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Brockham 1
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PL234
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3.6%
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Angus Energy 5
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Angus Energy 5
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8.9
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Drilling of sidetrack well being
considered.
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Holmwood 3
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PEDL143
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20%
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UKOG
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Europa Oil & Gas (Holdings)
plc
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91.8
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H-1 exploration well
planned.
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Horndean 1
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PL211
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10%
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UKOG (GB) Limited
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IGas Energy Plc
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27.3
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Field in stable
production.
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Horse Hill 4
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PEDL137
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20.163%
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Horse Hill Developments Ltd
6
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Horse Hill Developments Ltd
6
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99.3
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Flow testing of HH-1 planned,
awaiting regulatory approvals.
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Horse Hill 4
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PEDL246
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20.163%
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Horse Hill Developments Ltd
6
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Horse Hill Developments Ltd
6
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43.6
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Flow testing of HH-1 planned,
awaiting regulatory approvals.
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Isle of Wight (Offshore)
3
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P1916
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77.5%
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UKOG Solent Limited
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UKOG Solent Limited
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46.7
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Awaiting 14th Round, UKOG adjacent
onshore acreage.
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Isle of Wight (Onshore)
3
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14th Round
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TBA
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TBA
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TBA
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200.0
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Subject to 14th Round
awards.
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Lidsey 1
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PL241
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4.2%
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Angus Energy 5
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Angus Energy 5
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5.3
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Drilling of infill well being
considered.
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Markwells Wood
2
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PEDL126
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100%
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UKOG (GB) Limited
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UKOG (GB) Limited
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11.2
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Compiling Field Development
Plan.
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Notes:
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1. Oil field currently in
production.
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2. Oil discovery pending development
and/or appraisal drilling.
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3. Exploration asset with drillable
prospects and leads.
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4. Oil discovery pending flow
testing.
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5. UKOG has a 6% interest in Angus
Energy. Angus Energy has a 70% interest in Lidsey and a 60%
interest in Brockham.
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6. UKOG has a direct 30% interest in
HHDL, plus an indirect 1.02% interest via Angus Energy. HHDL has a
65% interest in PEDL137 and PEDL246.
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