Last checked at 3 May 2017 07:00
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Markwells Wood Planning Application Update
UKOG (AIM & NEX: UKOG) announces that, in order to progress the acquisition of new site-specific hydrogeological data over and around the Markwells Wood drilling pad, the Company has temporarily withdrawn its planning application to the South Downs National Park Authority ("SDNPA"). The application is now planned for resubmission later in 2017 after the completion of the planned data acquisition and upon the conclusions of ongoing technical conversations with the Environment Agency ("EA").
In order to address the EA's last-minute submission of 4 April requesting that new site-specific data be acquired over the site to confirm the validity of the submitted Groundwater Risk Assessment, UKOG requested that SDNPA delay the determination of the Markwells Wood project from their planning committee meeting of 11 May to the 13 July 2017. This period would have enabled necessary acquisition and dialogue to be completed. Disappointingly, this request was refused by SDNP. Data acquisition has commenced, and is expected to be completed before the summer.
The Company now also intends to take this opportunity to apply for a full EA permit covering the first phase of the proposed development, with a view to including this as part of the resubmission of the planning documents.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"Given the potential sensitivity of the Markwells Wood site to the adjacent chalk groundwater system, it is in the public interest that this subject be investigated as thoroughly as possible prior to any further site activity. Whilst the refusal of SDNPA to accommodate this important step is somewhat unsatisfactory, we look forward to concluding this matter with the EA and resubmitting the application as soon as practicable. Our target of drilling Markwells Wood by Q2 2019 is unlikely to be affected."
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 |
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 |
Brockham | PL235 | 0.72% | Angus Energy 6 | Angus Energy 6 | 8.9 | Well intervention programme ongoing |
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 |
Lidsey | PL241 | 0.56% | Angus Energy 6 | Angus Energy 6 | 5.3 | Drilling of infill well being considered |
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 1.11% interest in Angus Energy, which has a 50% interest in Lidsey and a 65% interest in Brockham; Angus hold an option to increase their Lidsey interest by a further 10% to 60%.
7. UKOG has a direct 48% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.