Last checked at 13 Jul 2023 07:00
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.
For further information, please contact:
UK Oil & Gas PLC |
| |
Stephen Sanderson / Allen D Howard
| Tel: 01483 941493 | |
WH Ireland Ltd (Nominated Adviser and Broker) |
| |
James Joyce / James Bavister/ Andrew de Andrade
| Tel: 020 7220 1666 | |
Communications |
| |
Brian Alexander | Tel: 01483 941493 | |
Glossary
oil field | a subsurface oil accumulation existing within a single or multiple geological reservoir unit from which oil is recovered to surface. Note that an oil field can consist of one or more oil pools or distinct reservoirs. |
oil in place | the quantity of oil that is estimated to exist in naturally occurring accumulations within the ground before any extraction to surface via production |
recovery factor | the recoverable amount of oil in place, normally expressed as a percentage |
recoverable resources | those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development |
workover | the process of performing maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the tubing string after the well has been killed and a workover rig has been placed on location. |
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.