Last checked at 20 Jan 2021 07:00
UK Oil & Gas PLC
("UKOG" or the "Company")
Completion of Turkish Resan licence participation agreement with AME
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that following last week's formal government consent to the Company's 50% ownership of the 305 km² Basur-Resan oil appraisal and exploration licence ("the Licence"), it has now also completed the transaction with Aladdin Middle East Ltd ("AME"). Effective forthwith the conduct of the Licence's operations will now be governed by the respective joint operating agreement.
Both the Company and AME will now work towards finalising the design and delivery of a successful first appraisal well, Basur-3, aimed at establishing the commerciality of the aerially extensive and as yet undeveloped Basur-Resan oil discovery.
As per the Company's 15 January 2021 announcement, the board views the Licence's forthcoming 2021 appraisal drilling programme to present a compelling and potentially transformational growth opportunity for the Company. Further updates will be issued in due course.
A newly updated and expanded Turkey presentation is available on the Company's website: https://www.ukogplc.com/ul/UKOG_Turkey_Slides%20_FINAL_190121.pdf
Stephen Sanderson UKOG's Chief Executive commented:
"We look forward to a long and successful partnership with AME and to proving Basur-Resan to be commercially viable, a potentially significant and transformational prize for the Company."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 37 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 / Kiran Morzaria
| Tel: 01483 941493 |
WH Ireland Ltd (Nominated Adviser and Broker) |
|
James Joyce / James Sinclair-Ford
| Tel: 020 7220 1666 |
Communications |
|
Brian Alexander | Tel: 01483 941493 |
|
|
Glossary
discovery | A petroleum accumulation (oil in this case) 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 |
UKOG Licence Interests
The Company has interests in the following UK and international licences:
Asset | Licence | UKOG Interest | Licence Holder | Operator | Area (km2) | Status |
Avington 1 | PEDL070 | 5% | UKOG (GB) Limited | IGas Energy Plc | 18.3 | Field temporarily shut in |
Loxley & Broadford Bridge 2, 3, 7 | PEDL234 | 100% | UKOG (234) Ltd 4 | UKOG (234) Ltd 4 | 300 | Loxley/Godley Bridge gas discovery, BB-1/1z oil discovery |
Horndean 1 | PL211 | 10% | UKOG (GB) Limited | IGas Energy Plc | 27.3 | Field in stable production |
Horse Hill ¹, ⁵ | PEDL137 | 85.635% | Horse Hill Developments Ltd ⁶ | Horse Hill Developments Ltd ⁶ | 99.3 | Field in stable production |
Horse Hill ¹, ⁵ | PEDL246 | 85.635% | Horse Hill Developments Ltd ⁶ | Horse Hill Developments Ltd ⁶ | 43.6 | Field in stable production |
Isle of Wight 2, 3 | PEDL331 | 95% | UKOG | UKOG | 200 | Planning application submitted for Arreton oil appraisal well |
Resan Turkey 2, 3, 8 | M-47-b1, b2 | 50% | UKOG Turkey Ltd | Aladdin Middle East | 305 | Appraisal of Basur-Resan oil discovery plus further expl. prospects. Drilling planned in 2021 |
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Loxley Portland gas accumulation, the Broadford Bridge-1/1z Kimmeridge oil discovery, plus further undrilled Kimmeridge exploration prospects.
5. Portland and Kimmeridge oil field with productive and commercially viable zones, HH-1 in stable oil production, production planning consent granted in September 2019, long-term production consent granted in March 2020.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
7. Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential
8. High-impact oil appraisal project with an upside OIP range of 150-500 mmbbl gross with expected recovery factors of 10-20% of OIP
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014