RE: RNS15 Jan 2021 07:04
Stephen Sanderson UKOG's Chief Executive commented:
"It is now evident that, in the success case, the Basur-Resan appraisal project has the potential to surpass the recoverable oil and gas volumes currently assigned by Xodus to our material UK Arreton and Loxley appraisal projects. It also has the advantage of lower drilling and operating costs and, facilitated by Turkish petroleum law, the possibility to rapidly monetise the success case within a year. For these reasons success could be transformational for the Company.
Along with further optimising Horse Hill and pursuing a Loxley planning appeal, the Company will now focus its efforts in the first half of 2021 towards the design and delivery of the Basur-3 appraisal well. We also look forward to hearing the outcome of our December Turkish new licence application, which could add further similar sized potential into our growing portfolio."
Basur-Resan: a potentially material discovered and undeveloped oil resource
As previously reported on 23 July and 14 October 2020, the Licence contains the aerially extensive and as yet undeveloped Discovery, along with two other undrilled exploration prospects.
As at UKOG's material Loxley discovery, the Discovery was successfully tested at its north western end via the 1964 Basur-1 discovery well, which flowed 500 bbl of oil to surface over a 6-hour period from naturally fractured and dolomitised Mardin limestones, an extrapolated rate equivalent to 2,000 bbl of oil per day.
As per the Company's 14 October RNS, Xodus' June 2020 report estimates the Discovery to contain material aggregate gross mean and high case discovered recoverable volumes (i.e., the estimated volumes that could be produced to surface) of 37.2 mmbbl and 67 mmbbl respectively, with UKOG's corresponding 50% net share being 18.6 mmbbl and 33.5 mmbbl.
Sign In
Follow the stocks
