Last checked at 21 Jun 2021 07:00
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey Basur-3 drilling rig mobilised to site
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that following completion of the Basur-3 appraisal well's drilling pad and finalisation of the rig contract, the Oceanmec Karahan ZJ40DZ rig has now been mobilised to the site from western Turkey. As of 2359 hrs on Saturday 19th June, 38 related loads had been received at site. The rig-up and rig-acceptance stage is expected to continue throughout the coming week with an expected drilling start shortly afterwards.
Basur-3 will be the first modern well designed to properly appraise and assess the extent and commercial viability of the discovered Basur-Resan oil pool. The well will test the north-western structural culmination of the 60 km² Basur-Resan geological structure, approximately 1.2 km north and geologically updip from the 1964 Basur-1 oil discovery well.
As detailed in the Company's 14 October 2020 and 15 January 2021 releases, Basur-1 produced 500 barrels of oil from a short 6-hour test. Further wells drilled in the 1950s to the southwest within the Resan area of the structure reported good oil shows at comparable depths to those at Basur, with one well recovering live oil to surface.
It should be noted that the data quality, record keeping and operational practices employed in Basur-Resan's 1950s-60s wells are considered poor by modern standards, hence the necessity for new 21st century data acquisition and knowledge to properly assess the discovery's overlooked potential.
Further operational updates will be issued in due course after drilling has commenced.
UKOG Turkey Ltd holds a 50% interest in Basur-3 and the surrounding 305 km² Resan M47-b1,b2 licence.
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:
"This welcome news is yet further confirmation that the pace of operations is far more rapid in Turkey than the UK, taking only 3 months from the start of site construction to the arrival of the drilling rig. We look forward to rig acceptance and to drilling the first well in our planned Turkish campaign."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 37 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 |
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Stephen Sanderson / Kiran Morzaria
| Tel: 01483 941493 |
WH Ireland Ltd (Nominated Adviser and Broker) |
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James Joyce / James Sinclair-Ford
| Tel: 020 7220 1666 |
Communications |
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Brian Alexander | Tel: 01483 941493 |
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Glossary
discovery | 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 |
oil pool | a subsurface oil accumulation existing within a single geological reservoir unit. Note that an oil field can consist of one or more oil pools or distinct reservoirs within a single large accumulation. |
oil shows | the presence of live oil in rock cuttings recovered to surface whilst drilling |
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