Last checked at 20 Sep 2016 10:58
20 September 2016
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Appraisal & Development Planning Submission - Markwells Wood Oil Discovery, UK Weald Basin
UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that a planning application has been submitted to the South Downs National Park Authority for the appraisal and development of the company's conventional Markwells Wood-1 ("MW-1") oil discovery, located near Rowlands Castle in West Sussex. UKOG owns a 100% interest in the Markwells Wood licence (PEDL126). The MW-1 oil discovery, which was successfully tested in 2012, lies adjacent to the producing Horndean oil field, a geological look-alike accumulation in which the company has a 10% interest.
Subject to the required regulatory approvals, the first phase of the envisaged Markwells Wood development would consist of the drilling and extended production testing of a new horizontal sidetrack appraisal well from the existing MW-1 borehole. Contingent upon the sidetrack's commercial performance, a second phase of up to three further horizontal production wells and a water injection well would be undertaken.
In order to minimise impact to the locality, feedback from a public consultation and engagement process, undertaken in July, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle takes approximately 16 weeks.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This is an important milestone towards monetising the Markwells Wood oil discovery. We look forward to further engaging with stakeholders and to a successful planning outcome."
Qualified Person's Statement:
Stephen Sanderson, UKOG's Executive Chairman, who has over 35 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 / James Bavister Tel: 020 7220 1666
Square 1 Consulting (Public Relations)
David Bick / Brian Alexander Tel: 020 7929 5599
Glossary:
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 |
sidetrack | re-entry of a well from the well's surface location with drilling equipment for the purpose of deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location, or to remedy an engineering problem encountered in the existing well bore. |
Notes to Editors:
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 in stable production. |
Baxters Copse 2 | PEDL233 | 50% | UKOG Weald Limited | IGas Energy Plc | 89.6 | Reviewing economics of appraisal/development well. |
Broadford Bridge 3 | PEDL234 | 100% | Kimmeridge Oil & Gas Limited 4 | Kimmeridge Oil & Gas Limited 4 | 300.0 | BB-1 well permitted, expected 2017 spud date. |
Brockham 1 | PL235 | 3.6% | Angus Energy 6 | Angus Energy 6 | 8.9 | Drilling of sidetrack well being considered. |
Holmwood 3 | PEDL143 | 30% | UKOG | Europa Oil & Gas (Holdings) plc | 91.8 | Holmwood-1 exploration well planned. |
Horndean 1 | PL211 | 10% | UKOG (GB) Limited | IGas Energy Plc | 27.3 | Field in stable production. |
Horse Hill 5 | PEDL137 | 31.2% | Horse Hill Developments Ltd 7 | Horse Hill Developments Ltd 7 | 99.3 | Extended flow testing of HH-1. |
Horse Hill 5 | PEDL246 | 31.2% | Horse Hill Developments Ltd 7 | Horse Hill Developments Ltd 7 | 43.6 | Extended flow testing of HH-1. |
Isle of Wight (Offshore) 3 | P1916 | 100% | UKOG Solent Limited | UKOG Solent Limited | 46.7 | Preparing drilling planning submission. |
Isle of Wight (Onshore) 2, 3 | PEDL331 | 65% | UKOG | TBA | 200.0 | Preparing drilling planning submission. |
Lidsey 1 | PL241 | 4.2% | Angus Energy 6 | Angus Energy 6 | 5.3 | Drilling of infill well being considered. |
Markwells Wood 2 | PEDL126 | 100% | UKOG (GB) Limited | UKOG (GB) Limited | 11.2 | Submitted planning application. |
Notes:
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.
5. Oil discovery with recently completed flow testing.
6. UKOG has a 6% interest in Angus Energy, which has a 70% interest in Lidsey and a 60% interest in Brockham.
7. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.