Last checked at 11 Dec 2023 07:00
UK Oil & Gas Plc
("UKOG" or the "Company")
Horse Hill Farmin Update
UK Oil & Gas Plc (London AIM: UKOG) is pleased to announce that further to its announcement of 28th March 2023, the Company's relevant subsidiaries and Pennpetro Energy Plc ("PPP") have agreed to extend the conditional binding Horse Hill farm-in term sheet until 30 June 2024, whereby PPP will farm-in to the Horse Hill Oil Field on an incremental production only basis by paying 100% of both a 12 km² 3D seismic survey and a new crestal production well, Horse Hill-3 ("HH-3"). The farmin remains subject to the completion of the formal farmin agreement and necessary regulatory consents. The Company currently holds an effective 85.635% interest in Horse Hill and the surrounding PEDL137 and PEDL246 licences.
As per the 28th March 2023 RNS, UKOG's subsidiaries will retain 100% ownership and rights to all oil production and revenues from Horse Hill-1 ("HH-1"), ownership of HH-2/2z and will remain as the field and licence operator. Upon completion of a successful farmin well by PPP, the Company's subsidiaries will hold a 51% interest in all HH-3 production with UKOG's net effective interest in HH-3 being 43.67%.
3D seismic acquisition is currently targeted for H1 2024.
Stephen Sanderson UKOG's Chief Executive commented:
"In addition to the continued profitability of the existing oil production from HH-1, which UKOG's subsidiaries will retain all rights to, this farmin offers the prospect of increased production and revenues to the Company at zero capital cost, helping preserve working capital for the Company's other significant growth projects, Dorset hydrogen storage and Loxley conventional gas."
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 / Andrew de Andrade / James Bavister Tel: 020 7220 1666
Communications
Brian Alexander Tel: 01483 941493
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.