Last checked at 28 Apr 2015 07:00
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Update - Horse Hill, UK Weald Basin
The Company notes the comments in yesterday's press in relation to the Horse Hill licences in which the Company has an effective economic interest of 20.358 percent. The Company confirms that the current two exploration licences over the Horse Hill licence area and their expiry dates are as follows:
the PEDL137 licence (within which the Horse Hill-1 well was drilled and which was the subject of the Company announcement of 9 April 2015) expires on 30 September 2015 and
PEDL246 licence expires on 30 June 2019.
The operator of the two licences, Horse Hill Developments Limited* ("HHDL"), has already applied to the Oil & Gas Authority ("OGA") (formerly the Department of Energy and Climate Change) for a one year extension of the exploration period of PEDL137.
The Company will update the market on this licence extension in due course.
Further, the Company has been informed by the PEDL137 operator, HHDL, that it intends to conduct a flow test on Horse Hill-1 later in 2015 and that it has already submitted the applications to the authorities for their consent. Planning approval for a flow test on Horse Hill-1 is already in place, as this was included in the original Surrey County Council planning approval. Subject to the results of the flow test being successful, the operator would seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via submission of a Field Development Plan to OGA.
UKOG's interest in Horse Hill:
The Horse Hill-1 well is located within onshore exploration License PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 30% direct interest in Horse Hill Developments Ltd ("HHDL") and a 1.32% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.
Note *: The PEDL137 and PEDL246 licenses are held 35% by Magellan Petroleum Corporation and 65% by Horse Hill Developments Limited
For further information please contact:
UK Oil & Gas Investments PLC
David Lenigas / Donald Strang Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / Mark Leonard Tel: 020 7220 1666
Square 1 Consulting (Public Relations)
David Bick / Mark Longson Tel: 020 7929 5599