Last checked at 1 Mar 2023 07:00
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey: Pinarova-1 well update
Highlights:
· Drilling rig secured for new Pinarova-1 shallow oil exploration well (UKOG 50% interest), designed to test shallow Eocene Hoya light oil prospect, of some 9 km² areal extent, 300-645m below surface. Pinarova lies beneath an active light oil seep found last summer in a seismic shot hole, 6 km north of the Company's Basur-1 oil discovery.
· Site construction now expected to start in 7-10 days with an estimated duration of around 14-21 days, given good weather.
· Drilling to a total depth of around 500-550m to directly follow site completion, currently expected around end March to early April 2023. Dependent on outcomes, expected drilling campaign duration up to 28 days.
· The Company is fully funded to cover its share of the expected $0.4 million gross dry hole and $0.63 gross success case (tested and completed as an oil producer) costs.
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that the Resan JV (UKOG 50% non-operated interest) having secured a suitable small rig to drill the new Pinarova-1 shallow oil exploration well, now expects to commence site construction within the next 7-10 days. Site construction is expected to take approximately 14-21 days and, consequently, given no weather-related construction delays, drilling to a total depth of around 500-550m is expected to commence directly after site completion towards the end of March to early April 2023. The Pinarova-1 campaign is expected to take up to 28 days to deliver a well completed for future oil production.
As per the Company's 11th January 2023 release, Pinarova-1, located 6 km north of the Basur-1 oil discovery, is designed to test a working hypothesis, supported by well and seismic data, that the active 41.7˚API light oil seep found last summer in a seismic shot hole above the Pinarova structure (see RNS of 30 June 2022), is directly fed by and connected to an underlying light oil accumulation of some 9 km² areal extent within Eocene Hoya group limestones, 300-645m below surface.
The presence of movable oil within Pinarova is also indicated by results of the 2018 Kezer-1 shallow geothermal well, located near the apex of the Pinarova geological feature. Kezer-1 reported strong oil shows throughout the Hoya and is reported to have flowed heavily oil-cut fluids to surface on a short open-hole geothermal test.
The Company and its joint partner Aladdin Middle East consider Pinarova to offer similar potential success case outcomes to a Basur-4 appraisal well, but at much lower drilling and development costs and with a shorter time to execution and delivery.
Estimated gross Pinarova-1 drilling costs range from $0.4 million dry hole to $0.63 million tested and completed as a pumped oil producer. The Company has ample funds to cover its share of the planned drilling and testing campaign.
Stephen Sanderson, Chief Executive, commented:
"Pinarova's prospectivity, potential success case oil volumes and modest drilling costs make it an attractive stand-alone project that could, in the success case, deliver oil production in H1 2023. Given the positive shallow oil seep evidence plus the good light oil shows encountered within Pinarova by the Kezer-1 geothermal well, the new well will seek to establish if that oil is present in commercially viable saturations and volumes that can be pumped to surface. We look forward to the impending start of site construction and subsequent drilling directly upon its completion."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 39 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 / James Bavister / Andrew de Andrade
| Tel: 020 7220 1666
| |
Communications |
| |
Brian Alexander | Tel: 01483 941493 | |
Glossary
°API | a measure of the density of crude oil, as defined by the American Petroleum Institute |
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 |
geothermal well | a well designed to harness geothermal heat within the earth by transferring heat from hot formation water at depth to surface via a borehole. The heat transfer to surface can be via direct circulation of formation water to surface (circulating loop) or via means of a heat pump within the borehole (closed loop). |
limestone | a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. |
oil seep | a natural flow of crude oil at or close to the earth's surface whose origin is from a petroleum accumulation or oil source rock at depth. |
shot hole | a shallow borehole in which a small amount of explosive is detonated in order to generate a seismic signal |
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.