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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: 1.00High: 0.00Low: 0.00Yesterday’s Close: 1.025





EWT Update, Portland & Kimmeridge Oil Discovery

Thu, 15th Nov 2018 07:00

RNS Number : 4007H
UK Oil & Gas PLC
15 November 2018

UK Oil & Gas PLC

("UKOG" or the "Company")

Extended Well Test ("EWT") Hits Significant Production Milestone, KL3 Exceeds 10,000 Barrels

Horse Hill-1 ("HH-1") Portland and Kimmeridge Oil Discovery, Weald Basin, UK

UK Oil & Gas PLC (London AIM: UKOG) announces that Horse Hill Developments Ltd ("HHDL"), a UKOG subsidiary company and the operator of the HH-1 Kimmeridge Limestone and conventional Portland Sandstone oil discovery, has informed the Company that total oil production from the 2018 EWT has reached 13,920 barrels ("bbl") approximately 2.21 million litres, with gross oil sales revenues of approximately US$1.1 million.

2018 HH-1 oil production comprises 10,248 bbl (1.63 million litres) of 40° API oil from the Kimmeridge Limestone 3 ("KL3") and 3,672 bbl (c. 584,000 litres) of 35° API oil from the Portland. No formation water was returned to surface from either the KL3 or Portland. The KL4 EWT programme is planned to commence shortly following the ongoing final KL3 pressure build up test. HH-1 is located in licence PEDL137 in which UKOG holds a 46.735% beneficial interest. Key points and further details are summarised below.

2018 EWT Milestones to date:

· Approximately US$1.1 million gross 2018 HH-1 oil sales achieved to date from the KL3 and Portland (this figure excludes the KL4 oil reservoir, which will be tested shortly).

· 13,920 bbl (2.21 million litres) total KL3 and Portland production as of 0700 14 November.

· 10,248 bbl (1.63 million litres) of 40° API produced solely from the KL3 as of 0700 14 November.

· 15,860 bbl (2.52 million litres) aggregate total oil production from the 2016 and 2018 tests.

KL3 EWT Update:

· 10,248 bbl of KL3 oil was produced over 30 days of sustained daily natural and pumped flow from an 83 ft perforated interval. The programme included 9 days of pressure build-ups (or "shut-ins") and downhole sampling. Production was achieved via a variety of choke sizes whilst maintaining stable bottom hole pressures. No formation water was returned to surface; however, small intermittent slugs of completion brine were recorded.

· KL3 produced at an initial metered sustained natural flow rate of 771 barrels of oil per day ("bopd"), with a maximum recorded half hourly rate of 902 bopd. The average sustained daily rate over the full test period was 342 bopd. Prior to the final shut-in period the well was producing oil at a stable bottom hole pressure of around 800 psi.

· Total KL3 gas production to date is 3.5 million cubic feet ("cu ft"), with daily produced amounts through the enclosed flare falling within the Environment Agency's permitted limits and parameters.

· EWT results to date indicate that the KL3 oil pool "seen" by HH-1 is commercially viable. Consequently, following completion of the KL4 EWT, continued test production of a commingled KL3 and KL4 oil stream is planned.

· Other than at weekends, when planning restrictions apply, over 40 road tankers (of 220 barrels crude oil capacity) have exported KL3 crude oil to BP's Hamble oil terminal, with around 500 barrels of stock tank oil remaining at the site for subsequent export. The KL3's Brent quality crude has been sold at prevailing Brent crude oil prices less a small deduction for handling.

· KL4, which flowed at a reported stable dry oil rate of 901 barrels of oil per day over a 4-hour period in 2016, will be flow tested after completion of the current KL3 pressure build-up.

Stephen Sanderson, UKOG's Chief Executive, commented:

"The 2018 EWT's total test production of almost 14,000 barrels of oil, with over 10,000 barrels to date from the single Kimmeridge KL3 horizon, firmly establishes Horse Hill as a commercially viable oil field. These "hard fact" production numbers, together with the million dollar sales revenues, undoubtedly mark the most significant milestone in the Company's short history. The Company will spare no effort to push Horse Hill towards full time production in late 2019/early 2020.

We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production that will take us up to the spud of the HH-2 and HH-1z production wells in 2019."

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:

UK Oil & Gas PLC


Stephen Sanderson / Kiran Morzaria

Tel: 01483 243450



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 243450

Glossary

°API

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

discovery

a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons

extended well 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 up to 90 days maximum

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

UKOG Licence Interests

The Company has interests in the following UK licences:

Asset

Licence

UKOG Interest

Licence Holder

Operator

Area (km2)

Status

Avington 1

PEDL070

5%

UKOG (GB) Limited

IGas Energy Plc

18.3

Field currently shut in

Broadford Bridge 4

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

Europa Oil & Gas (Holdings) plc

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

46.735%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

99.3

Production tests ongoing, 2 further appraisal wells scheduled for 2018/19

Horse Hill 5

PEDL246

46.735%

Horse Hill Developments Ltd6

Horse Hill Developments Ltd 6

43.6

As above

Isle of Wight (Onshore) 2, 3

PEDL331

65%

UKOG

UKOG

200.0

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

Markwells Wood 2

PEDL126

100%

UKOG (GB) Limited

UKOG (GB) Limited

11.2

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
oil 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 in 3 zones, EWT ongoing, two further wells HH-1z and HH-2 planned in early 2019

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

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
DRLFFAFWLFASEDF


Related Shares:
(UKOG)




DateSourceHeadlineCategory
11-Jun-19 07:00RNSHorse Hill-1 - 50,000 Barrels of Oil ProductionResults and Trading Reports
03-Jun-19 07:00RNSAcquisition of Further Interest in PEDL143Mergers, Acquisitions and Disposals
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


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