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Share Price Information for Uk Oil & Gas (UKOG)

London Stock Exchange
Share Price: 1.075
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Change: 0.00 (0.00%)
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HH-2/2z Drilling Commences ("Spud") at Horse Hill

Mon, 30th Sep 2019 07:01

RNS Number : 0517O
UK Oil & Gas PLC
30 September 2019

UK Oil & Gas PLC

("UKOG" or the "Company")


HH-2/2z Drilling Commences ("Spud") at Horse Hill Oil Field


UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that drilling operations for its new Horse Hill-2/2z ("HH-2/2z") Portland well commenced ("spudded") on Sunday morning, 29 September.


HH-2/2z, the first of two new horizontal wells in the field's Portland oil pool, is designed to be retained as a future production well, capable of delivering flow rates significantly higher than the previously reported 362 barrels of oil per day ("bopd") from the HH-1 vertical Portland discovery well. Following a planned extensive HH-2z production flow-testing campaign, both HH-2z Portland and the HH-1 Kimmeridge well are expected to be put into long term production by the end of 2019.


UKOG holds a controlling 85.635% interest in the Horse Hill oil field and surrounding highly prospective PEDL137 and PEDL246 licences, which are operated by UKOG's subsidiary company, Horse Hill Developments Ltd.


Stephen Sanderson, UKOG's Chief Executive, commented:


"The spud of HH-2/2z is another UKOG landmark milestone and a key enabler towards establishing long term oil production at Horse Hill. We are confident that the meticulously planned HH-2/2z operation, the first of two planned horizontal wells in the Portland oil pool, leaves little to chance. We look forward to a safe and successful drilling campaign and to the realistic prospect of HH-2/2z delivering a significant increase in UKOG's net oil production and associated revenues before the end of 2019."


Forward Drilling Plans:


The HH-2 pilot, designed to acquire key geological data to ensure the horizontal is correctly positioned within the Portland reservoir, will drill ahead in  12¼" diameter hole down to around 2,000 ft below surface and will then be cased back to surface. Drilling of 8½" diameter hole and conventional coring over the full vertical extent of the Portland oil pool will then follow.


Upon reaching a total depth of approximately 3,000 ft, HH-2 will be electric logged and then plugged back in preparation for the immediate start of HH-2z. The planned HH-2z trajectory, of total length of approximately 5,800 ft from surface, will contain a horizontal section of approximately 3,200 ft  wholly within the Portland reservoir's most oil-productive zone.


HH-1 Kimmeridge Flow Test Update:


Following last Monday's shut-in, necessary to ensure safe rig assembly, test production from the HH-1 Kimmeridge oil pool was restarted on Saturday at initial half hourly rates of between 302-473 bopd. Kimmeridge test production is planned to continue throughout the drilling campaign.  


Further drilling and testing updates will be issued in due course.


Qualified Person's Statement


Matt Cartwright, UKOG's Commercial Director, who has over 36 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 900582


WH Ireland Ltd (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford                                                           Tel: 020 7220 1666


Cenkos Securities PLC (Joint Broker)

Joe Nally / Neil McDonald                                                                         Tel: 0207 397 8919


Novum Securities (Joint Broker)                                                                                                              

John Bellis                                                                                                     Tel: 020 7399 9400


Public Relations

Brian Alexander                                                                                            Tel: 01483 900582





horizontal well

a well that during drilling is steered so as to follow and remain within a particular geological stratum or reservoir unit having a trajectory that runs  approximately parallel to the top and or base of the target horizon

oil field

an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface

well test

or flow test involves testing a well by flowing hydrocarbons to surface, typically through a test separator; key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate.


UKOG Licence Interests


The Company has interests in the following UK licences:




UKOG Interest

Licence Holder


Area (km2)


Avington 1



UKOG (GB) Limited

IGas Energy Plc


Field currently temporarily shut in

Broadford Bridge/Loxley/Godley Bridge 2, 3, 8



UKOG (234) Ltd 4

UKOG (234) Ltd 4


BB-1/1z oil discovery, Loxley-1 gas appraisal well planning application submitted

A24 3






Finalising new site selection to drill Portland and Kimmeridge prospects

Horndean 1



UKOG (GB) Limited

IGas Energy Plc


Field in stable production

Horse Hill 5



Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6


Production tests ongoing, HH-2/2z drilling

Horse Hill 5



Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6


As above

Isle of Wight (Onshore) 2, 3






Preparing planning submission for Arreton-3 oil appraisal well and Arreton South exploration well

Markwells Wood



UKOG (GB) Limited

UKOG (GB) Limited


MW-1 P&A




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 Broadford Bridge-1/1z Kimmeridge oil discovery, the eastern extension of the Godley Bridge Portland gas discovery, plus further undrilled Kimmeridge exploration prospects.

5.  Portland and Kimmeridge Oil field with productive and commercially viable zones, EWT ongoing, production planning consent granted in September 2019, appraisal/development drilling campaign underway. Long term production start expected late 2019.

6.  UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

7.  OGA consent received for the transfer of operatorship from Europa to UKOG

8.  Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential


The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014





This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit
Date   Source Headline
7th Nov 20194:33 pmRNSLoan Balance Reduction
4th Nov 20197:00 amRNSHorse Hill Oil Field: HH-2z Horizontal Update
22nd Oct 20197:00 amRNSHH-2 Pilot Completed & HH-2z Horizontal Underway
15th Oct 20199:00 amRNSSuccessful Completion of HH-2 Coring Operations
11th Oct 20198:56 amRNSCoring Operations Underway at Horse Hill

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