Last checked at 28 Jun 2021 07:00
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey: Basur-3 Drilling Commences
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that following formal acceptance of the Oceanmec Karahan ZJ40DZ rig at 1700 hrs BST+2, Saturday 26th June, air drilling of Basur-3's initial 17½ inch diameter hole section commenced at 1818 hrs local time. Upon completion of the 17½ inch hole section, 13⅝ inch casing is expected to be set and it is anticipated that the well will switch to a water-based mud system for the 12¼ inch section and the remainder of the well.
UKOG Turkey Ltd holds a 50% interest in Basur-3 and the surrounding 305 km² Resan M47-b1,b2 licence.
The Basur-3 appraisal well is the first modern well designed to properly appraise and assess the extent and commercial viability of the Basur-Resan oil pool discovered in the 1950s-1960s. Its primary objectives are the naturally fractured and dolomitised limestone rocks of the Cretaceous age Garzan and Mardin Formations, which are productive at our partner Aladdin Middle East's E. Sadak oil field, whose western edge is some 20 km to the southeast and along the same geological anticlinal trend.
The well is expected to test the north-western structural culmination of the 60 km² Basur-Resan geological anticlinal structure, approximately 1.2 km north and geologically updip from the 1964 Basur-1 oil discovery well which, as previously reported on 14 October 2020, 15 January 2021 and 21 June 2021, flowed oil to surface at encouraging rates over a 6 hour test period.
Further operational updates will be issued in due course.
A selection of the latest site photographs will be made available on the Company's website:
https://www.ukogplc.com
Stephen Sanderson, UKOG's Chief Executive, commented:
"The start of Basur-3 drilling is a landmark milestone for UKOG Turkey and the Company."
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
W H Ireland Ltd (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Communications
Brian Alexander Tel: 01483 900582
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Glossary
anticline | a domed shape geological structure. Often the anticline's geological expression can be seen at surface where it is expressed as a surface anticline. This is the case at Basur-Resan. |
discovery | 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 |
dolomite | a crystalline form of calcium carbonate or lime. The geological process of turning the more common calcite crystalline form of calcium carbonate into dolomite increases the pore space in the rock by approximately 13% thus improving the rocks ability to store oil and improve potential oil flow |
limestone | sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate or lime) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones |
oil field | a subsurface oil accumulation existing within a single or multiple geological reservoir unit from which oil is recovered to surface. Note that an oil field can consist of one or more oil pools or distinct reservoirs. |
oil pool | a subsurface oil accumulation existing within a single geological reservoir unit. |
UKOG Licence Interests
The Company has interests in the following UK and international licences:
Asset | Licence | UKOG Interest | Licence Holder | Operator | Area (km2) | Status |
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 |
Avington 1 | PEDL070 | 5% | UKOG (GB) Limited | IGas Energy Plc | 18.3 | Field temporarily shut in |
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 Summer 2021 |
Loxley 2, 3, 7 | PEDL234 | 100% | UKOG (234) Ltd 4 | UKOG (234) Ltd 4 | 300 | Loxley/Godley Bridge gas discovery, BB-1/1z oil discovery |
Isle of Wight 2, 3 | PEDL331 | 95% | UKOG | UKOG | 200 | Planning application submitted for Arreton oil appraisal well |
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