Uk Oil & Gas Regulatory News (UKOG)

UK Oil & Gas PLC

("UKOG" or the "Company")

Avington Oil Production to Restart

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Avington Joint Operating Committee has now formally agreed to restart oil production at the field. Prior to its 2017 shut-in, the field had produced 0.276 million barrels of an estimated mid case of 59 million barrels of original oil in place ("OIP"), a recovery factor of only 0.47%. As the three closest similar producing fields to Avington exhibit oil recoveries of around 6-13% of the assessed OIP, potentially significant remaining recoverable oil resources lie within Avington for future exploitation.

Avington operations will recommence via a workover of Avington-3z, the field's best performing well, which came on stream in 2007 and accounts for around 81% of produced oil. Given the 5-year shut-in period, which potentially has permitted reservoir pressure around the well to build up, some element of "flush" production (i.e., higher than the flow rate prior to shut-in) is expected upon production restart.

The field was granted new planning consent in December 2021. UKOG holds a 5% non-operated interest in Avington and the surrounding licence.

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has 40 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.

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Glossary

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this information is now considered to be in the public domain.