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Uk Oil & Gas Regulatory News (UKOG)



Regulatory News for Uk Oil & Gas (UKOG)


Share Price: 1.025Bid: 1.00Ask: 1.05Change: 0.00 (0.00%)No Movement on Uk Oil & Gas
Spread: 0.05Spread as %: 5.00%Open: 1.05High: 0.00Low: 0.00Yesterday’s Close: 1.025





Oil Production Test Update

Thu, 11th Apr 2019 07:00

RNS Number : 8218V
UK Oil & Gas PLC
11 April 2019

UK Oil & Gas PLC

("UKOG" or the "Company")

Oil Production Test Update

Landmark 15,000 barrels of Portland oil reached at Horse Hill

UK Oil & Gas PLC (London AIM: UKOG), is pleased to announce that dry oil production (i.e. zero produced water) from the Portland reservoir at the Horse Hill oil field, in which the Company has a 50.635% majority interest, has continued at a stable rate of over 220 barrels of oil per day ("bopd") delivering an aggregate total Portland volume exceeding 15,000 barrels ("bbl") to date. The Portland and Kimmeridge extended test programme has now produced a significant aggregate volume in excess of 40,000 bbl.

For prudent Portland reservoir management purposes, the average pumped rate from HH-1 continues to be maintained below the previously reported 362 bopd calculated optimised sustainable rate.

The well is currently shut in for a 60 hour pressure build up test prior to the scheduled retrieval of down hole pressure gauges. Following the pressure data retrieval and other maintenance over the coming week, Portland test production will resume.

Preparations for the planned drilling start of HH-1z and HH-2 in the second quarter of 2019 are nearing finalisation.

The HH-1 well and surrounding highly prospective licences PEDL137 and PEDL246 are operated by UKOG's subsidiary Horse Hill Developments Ltd in which the Company holds a 77.9% direct interest.

Further details of extended well test ("EWT") results to date are summarised below.

Horse Hill 2018-19 EWT Oil Production Milestones:

· Over 40,000 barrels ("bbl") aggregate Kimmeridge and Portland oil production to date.

· Over 25,000 bbl total Kimmeridge oil production.

· Over 15,000 bbl total Portland production to date, flow continues.

· 186 tankers of crude exported primarily to Perenco's Hamble oil terminal. The Portland's 36° API Brent quality crude containing zero produced water, continues to be sold at prevailing Brent crude oil prices, less a small deduction for handling and marketing.

Stephen Sanderson, UKOG's Chief Executive, commented:

"The Portland's proven ability to sustain a stable dry oil production rate of over 220 bopd for two months provides a further landmark that solidly underpins the validity of the Company's planned field development. We remain fully on track to drill new horizontals in the second quarter of this year and are even more confident that the new Portland horizontal well can achieve its 720-1,080 bopd target. We believe Horse Hill remains well positioned to deliver future significant value."

Qualified Person's Statement

Rob Wallace, UKOG's principal technical advisor, who has over 40 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Wallace is a Chartered Scientist, Chartered Geologist and Fellow of the Geological Society of London, an active member of the American Association of Petroleum Geologists, a member of the Petroleum Exploration Society of Great Britain and a member of the South African Geophysical Society.

For further information, please contact:

UKOG

Stephen Sanderson / Kiran Morzaria Tel: 01483 900582

WH Ireland (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 / David Bick Tel: 01483 900582

Glossary

°API

a measure of the density of crude oil, as defined by the American Petroleum Institute

oil field

an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface.

extended well test (EWT) or production test

a well test, as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and generally up to 90 days maximum flowing time per productive horizon. The objective being to establish whether a discovery is commercially viable and the best methods of future production and recovery

flow test

a flow test or well 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.

horizontal well

a well that during drilling is steered so as to 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

UKOG Licence Interests

The Company has interests in the following UK licences:

Asset

Licence

UKOG's Interest

Licence Holder

Operator

Area (km2)

Status

Avington 1

PEDL070

5%

UKOG (GB) Limited

IGas Energy Plc

18.3

Field currently temporarily shut in

Broadford Bridge 3

PEDL234

100%

UKOG (234) Ltd 4

UKOG (234) Ltd 4

300.0

BB-1 & 1z oil discovery, planning application approved

Holmwood 3

PEDL143

40%

UKOG

UKOG

91.8

Seeking alternate sites to drill Holmwood and other Kimmeridge prospects

Horndean 1

PL211

10%

UKOG (GB) Limited

IGas Energy Plc

27.3

Field in stable production

Horse Hill 5

PEDL137

50.635%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

99.3

Production tests ongoing, two further appraisal wells scheduled for 2019

Horse Hill 5

PEDL246

50.35%

Horse Hill Developments Ltd6

Horse Hill Developments Ltd 6

43.6

As above

Isle of Wight (Onshore) 2, 3

PEDL331

95%

UKOG

UKOG

200.0

Preparing planning submission for Arreton-3 oil appraisal well and Arreton South exploration well

Markwells Wood

PEDL126

100%

UKOG (GB) Limited

UKOG (GB) 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. Oil field with three productive and commercially viable zones, EWT ongoing, two further wells HH-1z and HH-2 scheduled in Q2 2019, development underway subject to grant of planning consent, expected in Q3 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

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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DateSourceHeadlineCategory
17-May-19 07:00RNSHorse Hill-1 Production Test UpdateCompany Announcement - General
16-Apr-19 07:00RNSAcquisition of Further Interest in PEDL143Mergers, Acquisitions and Disposals
11-Apr-19 14:46RNSResult of Annual General MeetingResults and Trading Reports
11-Apr-19 07:00RNSOil Production Test UpdateResults and Trading Reports
27-Mar-19 07:00RNSSuccessful Placing to Raise £3.5 MillionCompany Announcement - General
19-Mar-19 12:26RNSPosting of Annual Report and Accounts & AGM NoticeCompany Announcement - General
15-Mar-19 07:10RNSOil Production UpdateResults and Trading Reports
15-Mar-19 07:00RNSFinal Results for the year ended 30 September 2018Results and Trading Reports
12-Mar-19 16:41RNSSecond Price Monitoring ExtnCompany Announcement - General
12-Mar-19 16:35RNSPrice Monitoring ExtensionCompany Announcement - General
21-Feb-19 07:00RNSCompletion of Acquisition in Horse HillMergers, Acquisitions and Disposals
18-Feb-19 07:00RNSPortland Oil Production Resumes at Horse HillResults and Trading Reports
14-Feb-19 07:00RNSAcquisition of Further Interest in Horse HillMergers, Acquisitions and Disposals
11-Feb-19 09:05RNSSecond Price Monitoring ExtnCompany Announcement - General
11-Feb-19 09:00RNSPrice Monitoring ExtensionCompany Announcement - General
08-Feb-19 14:05RNSSecond Price Monitoring ExtnCompany Announcement - General
08-Feb-19 14:00RNSPrice Monitoring ExtensionCompany Announcement - General
08-Feb-19 11:05RNSSecond Price Monitoring ExtnCompany Announcement - General
08-Feb-19 11:00RNSPrice Monitoring ExtensionCompany Announcement - General
01-Feb-19 15:28RNSRelated Party Contractor AgreementCompany Announcement - General
23-Jan-19 11:01RNS2019-2020 Strategy and Drilling PlansResults and Trading Reports
22-Jan-19 09:00RNSCompletion of Arreton Oil Discovery AcquisitionCompany Announcement - General
16-Jan-19 07:00RNSKimmeridge Oil Production Continues at HH-1Results and Trading Reports
12-Dec-18 07:00RNSAcquisition of Interest in Arreton Oil DiscoveryMergers, Acquisitions and Disposals
15-Nov-18 07:00RNSEWT Update, Portland & Kimmeridge Oil DiscoveryResults and Trading Reports
18-Oct-18 07:00RNSPortland Declared Commercially ViableResults and Trading Reports
10-Oct-18 13:55RNSEWT Update: Horse Hill-1Results and Trading Reports
05-Oct-18 11:30RNSExtended Well Test and Regulatory UpdateCompany Announcement - General
25-Sep-18 07:00RNSCompletion of Further Interest in HHDLCompany Announcement - General
11-Sep-18 16:24RNS18-month Planning Extension ApprovedCompany Announcement - General


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