Last checked at 25 May 2017 16:37
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Operations Commence at Broadford Bridge-1, PEDL234 Licence, Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM and NEX: UKOG) announces that the drilling rig and key equipment necessary to drill the Broadford Bridge-1 ("BB-1") Kimmeridge Limestone well are now on site. All regulatory permissions are now in place and drilling is expected, therefore, to commence shortly. The BB-1 well is located in the 300 km² PEDL234 licence, in which the Company has a 100% interest via its ownership of the licence's operator, Kimmeridge Oil & Gas Limited.
The BB-1, an exploration step-out well, will test a geological look-alike to Horse Hill, located on the southern flank of the Weald Basin, and is, therefore, designed to test both the southerly extension of the Kimmeridge Limestone oil play across the Weald Basin and its development within the licence. The drilling will use tried and trusted conventional oil field techniques to test four naturally fractured Kimmeridge Limestone reservoir horizons, the uppermost two of which were successfully flow tested at the Company's Horse Hill oil discovery in 2016.
The well will acquire the most comprehensive data set gathered to date over the Kimmeridge Limestone sequence, to include extensive conventional coring and electric logging aimed at characterising natural fracturing and other key reservoir parameters. Once drilled, cored and logged, the well will be completed as a potential oil-producer and flow tested.
Stephen Sanderson, UKOG's Executive Chairman commented:
"The BB-1 well will add materially to our knowledge and understanding of the Kimmeridge Limestone play within the Licence and across the wider Weald Basin. BB-1 is a key piece of the Kimmeridge Limestone puzzle."
Qualified Person's Statement
Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Nick Tulloch / Neil McDonald Tel: 0131 220 6939
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 020 7929 5599
Glossary:
discovery | a discovery is a petroleum accumulation 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 |
electric logs | tools used within the wellbore to measure the rock and fluid properties of surrounding rock formations |
limestone | a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone |
naturally fractured reservoirs | fractured reservoirs contain cracks or surface of breakage within rock; fractures can enhance permeability of rocks greatly by connecting pores together; naturally fractured reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing |
step-out well | a well designed to determine the lateral extent of a discovered hydrocarbon accumulation or play |
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset | Licence | UKOG's Interest | Licence Holder | Operator | Area (km2) | Status |
Avington 1 | PEDL070 | 5% | UKOG (GB) Limited | IGas Energy Plc | 18.3 | Field in stable production |
Baxters Copse 2 | PEDL233 | 50% | UKOG Weald Limited | IGas Energy Plc | 89.6 | appraisal/development well planned; licence extended to 2018 |
Broadford Bridge 3 | PEDL234 | 100% | Kimmeridge Oil & Gas Limited 4 | Kimmeridge Oil & Gas Limited 4 | 300.0 | BB-1 well permitted, drilling planned in 2017 |
Holmwood 3 | PEDL143 | 30% | UKOG | Europa Oil & Gas (Holdings) plc | 91.8 | Holmwood-1 exploration well planned in 2017 |
Horndean 1 | PL211 | 10% | UKOG (GB) Limited | IGas Energy Plc | 27.3 | Field in stable production |
Horse Hill 5 | PEDL137 | 31.2% | Horse Hill Developments Ltd 7 | Horse Hill Developments Ltd 7 | 99.3 | Submitted planning application for long term production tests and drilling of two wells |
Horse Hill 5 | PEDL246 | 31.2% | Horse Hill Developments Ltd 7 | Horse Hill Developments Ltd 7 | 43.6 | As above |
Isle of Wight (Offshore) 3 | P1916 | 100% | UKOG Solent Limited | UKOG Solent Limited | 46.7 | Preparing drilling planning submission |
Isle of Wight (Onshore) 2, 3 | PEDL331 | 65% | UKOG | TBA | 200.0 | Preparing drilling planning submission |
Markwells Wood 2 | PEDL126 | 100% | UKOG (GB) Limited | UKOG (GB) Limited | 11.2 | Submitted planning application for appraisal and field development |
Notes:
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal drilling.
3. Exploration asset with drillable prospects and leads. Contains the extension of the Godley Bridge Portland gas discovery and the site of the forthcoming Broadford Bridge-1 well.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited, which has a 100% interest in PEDL234.
5. Oil discovery with recently completed flow testing.
6. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.